Simultaneous causality
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Simultaneous causality
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Endogeneity, instruments and simultaneous equations has come up 8 times in 3 exams since 2021.
This question is on Endogeneity and simultaneity bias, part of Endogeneity, instruments and simultaneous equations in Econometrics.
Why a regressor correlated with the error ruins OLS, including from simultaneous causation.
This is the only past-paper question on this subtopic in TestStop's bank.
Question from the JNU SIS 2021 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.